McIlvaine Predicts Larger Mercury Control Market

Jun 12, 2009

Since the promulgation of the Clean Air Mercury Rule, there have been two developments that promise to make the mercury control market even bigger. But, ironically, they have also caused uncertainty and inertia in the short-term. This is the situation described by the McIlvaine Company in its continually updated, Mercury Air Reduction Markets.

The two developments that will make the market bigger in the long-term are a court ruling vacating the existing rule and the election of a pro-environment president. The vacature is based on the failure of the U.S. Environmental Protection Agency to treat power plant mercury as hazardous air emissions. A replacement rule will have to address the emissions at each plant and not allow trading. The result will be a larger market.

The pro-environment administration is unlikely to let the nation be the only developed country that permanently grandfathers existing plants instead of treating all sources equally. Elsewhere in the world, older plants are given a grace period to bring their emissions down to those required of new plants.

There are some significant projects going forward. Certain mixed fuel applications in Europe as well as waste incineration projects in most areas of the world require mercury control. Cement plants and various mining facilities are also good prospects.

Depending on the timing of new U.S. regulations, the world market for activated carbon could be tight.